Microchip/SST split gate flash cell may don't have road map below 65nm.They may think something diffrent. That is the reason.
They may has some sigma data to show the performance, but it really high risk to put in into MCU even their low end PIC market.

China Gov: Funding
SIMIT: Material/Phyics
SMIC: Fab manufactory/Process Intergration
Microchip SST: TD/Process/Device/Design/Product/Test/Marketing
SST was acquired by microchip last year
See the link: http://english.sim.cas.cn/ns/icn/200910/t20091019_45466.html
Volume production? Is it NOR compatible product? Interesting and waiting for their risk production anoucement.How can they do something better than Micron.

@resistion
I also suspect that SIMIT is using chalcogenide mixes and the assertion that the development is entirely proprietary is a legal position. If the development is ever commercially successful one might expect some patent horse trading or legal action, eventually.

I think Chinese Academy of Sciences used chalcogenides like Ovonyx, based on the SIMIT papers I found. If these materials melt more easily than other semiconductor industry materials, their structure cannot be that stable..